OKLAHOMA CITY (OBV) — Private-sector hiring slowed sharply in January, with employers adding just 22,000 jobs nationwide, according to the January 2026 ADP National Employment Report, produced in collaboration with the Stanford Digital Economy Lab.
The report points to a cooling labor market following a much slower year overall. Private employers added 398,000 jobs in 2025, down significantly from 771,000 in 2024, continuing a multi-year deceleration in job creation.
Health care stood out as the strongest sector in January, adding 74,000 jobs. Manufacturing continued its downward trend, losing 8,000 jobs for the month and extending a streak of job losses that has persisted since March 2024. Professional and business services also saw a notable decline, shedding 57,000 jobs.
Hiring trends varied by employer size. Small businesses with 1-19 employees added 30,000 jobs, while firms with 20-49 employees lost 30,000. Mid-sized employers led gains overall, adding 37,000 jobs, while large employers with more than 500 workers reduced headcount by 18,000.
Despite weaker hiring, wage growth has remained steady, according to ADP Chief Economist Nela Richardson, suggesting that labor demand has cooled without triggering widespread pay compression.
“Job creation took a step back in 2025, with private employers adding 398,000 jobs, down from 771,000 in 2024,” Richardson said. “While we’ve seen a continuous and dramatic slowdown in job creation for the past three years, wage growth has remained stable.”
The ADP National Employment Report is based on anonymized payroll data covering more than 26 million U.S. workers and provides a high-frequency snapshot of private-sector labor market conditions watched closely by business leaders and policymakers.
